Analyst Grace Gilberg from Jefferies maintained a Hold rating on Kingfisher and keeping the price target at p274.00.
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Grace Gilberg’s rating is based on a combination of factors, including Kingfisher’s recent financial performance and market expectations. The company reported a positive outcome in its Q2 results, surpassing consensus expectations with a like-for-like sales increase of 0.9%, although this was lower than the previous quarter’s growth. The UK region showed notable strength, contributing to a higher than expected profit before tax for the first half of the year.
Despite these positive results, the full-year profit before tax expectations have only been adjusted to the upper end of the previous guidance range, indicating limited upside potential. Additionally, while the free cash flow guidance has been improved, it remains within a constrained range. These factors suggest that while Kingfisher is performing well, the potential for significant stock appreciation may be limited, justifying a Hold rating.
In another report released on September 8, RBC Capital also maintained a Hold rating on the stock with a p300.00 price target.